Operational Issues and Sustainable Growth of Hilton

FOUNDATION YEAR
PROJECT

Overview of Hilton
Hilton Hotel Corporation is recognized as internationally superior hospitality company who develops, manages, owns and franchisee various hotels and resorts as well
as different holiday ownership properties. The portfolio of the company involves varied world's best and well-known along with highly regarded hotel brands. It is a
global brand which offer services all across the world and headquartered in McLean, Virginia ( DeYeso, 2019). The company have a perception towards their customers
to offer them the best possible facilities, values and amenities as well as a wide range of hotel products and price points as they are completely focused towards their
mission which is related to become first and foremost choice of the world's travellers.
In order to expand their business operations, they created innovative joint venture arrangements which became a standard industry practice. They entered
into the things that help them to become a prime source of revenue for the firm. Hilton opens their first hotel in 1927 with having limited facilities which includes cold
running water and air conditioning in the public rooms. And the now company have more than 550 Hilton resorts and hotels operating into more than 78 countries over
6 continents (Hilton and McCann, 2022). The company has fulfilled with highly efficient team members who are appropriately served their business activities as well as
extend their passion for hospitality beyond their business walls each day.
Goals of Hilton including short and long term goals
 To make profits by selling diversified services
such as room services, meals, etc.
 Increases direct bookings by 50%.
 Cutting down environmental footprints in half and
doubling the investment in social impact by 2030.
 Create learning and career growth opportunities
for team members and communities with a focus
over under-represented groups.
 Promotes responsible inclusive conduct all across
their value chain operations.
 Operate with the help of best in class
measurements.
 Advocate for public policies that generates and
advances their travel with specified goals.
 Drive towards a net zero future.
 Cut water and wastage of materials by half by
2030.
Vision and values of the Hilton
According to Hilton, their primary vision is to fill the Earth with the warmth and light of hospitality industry with the help of delivering exceptional
experiences to their guests and users. According to the management and leaders of the company, their foremost vision is to continuously innovate and improve their
services as well as offered products so that through which they are able to serve their consumers with the best possible measures in the world. They want to create
amicable hospitality atmosphere that enhances the service quality along with provide great level of comfort to every consumer ( Langer, 2022). As it is among the fastest
growing brand among the hospitality sector that has also shared its 15 world-class brands into their own portfolio. Their vision focused and prepared on the basis of two
aspects which includes high positive impacts and hospitality through which they are going to keeps on creating their effective values.
The business is majorly based and builds upon six important and core values such as Hospitality which is the passion of Hilton as they believe in delivering
great level of guest experiences. Integrity according to which it believes in not just doing things right but doing all the right things. Leadership which is an integral
function performed by Hilton successfully. Teamwork as they always aspire to work in collaborative manner. Ownership according to which a sense of belongingness
and responsibility for their decisions and actions created. And the last is Now through which they focus in current things irrespective in future manner ( Hilton and
McCann, 2022).
Past operations of Hilton that help to achieve the vision
The foremost and crucial purpose of Hilton Hotel is to provide adequate accommodation facilities, drinks, food items along with other recreational facilities
to their guests. Their vision is based upon their aim to consistently provide pleasurable experiences to their users as well as invest into their workers for better and
innovative services as well as products for their visitors. Due to which they have to create following strategies through which they are able to meet the standards before
even the consumers makes their purchase. With the help of operational management with suppliers, the Hilton is able to get supplies from various of their suppliers who
are willing to provide their supplies to the hotels as this makes the approval of their tenders. The products have to gone through various tests in order to determine and
test their safety and quality before that are being purchased. Thus, the procedure of getting approval for the availability of funds to be spent is very long and hence
requires approval from management committees before the funds are getting released. This also take a lot of time as well as hampers the operations if the hotel ( Alameri
and et.al., 2021. This is the major reason that from past many years, the profit margins have been rising consistently and their financial performances are also relatively
good enough to discuss worldwide. Thus, the financial conditions also helped the company to create their vision and achieve in most successful manner. Moreover, the
company still consistently keeps on trying their best to sustain at this position.

Current operational issues which includes Hilton's sustainable growth and their impacts over the operations on the environment as well as CSR practices
In accordance with elaborating the current operational issues of Hilton which restricts the sustainable growth includes:
 Hiring and retaining staff members: This is among the most common issue faced by the Companies and so for Hilton as well. Hilton has a vision and mission
regarding providing appropriate and high quality services to their users and thus they require high quality staff members at all fronts.
 Change in market trends: This includes changes into the advertising and marketing trends that often create issues and problems for the guests ( Mo and Hilton,
2020). Also, the traditional marketing methods are not at all that much effective now and hence requires further modifications. With the help of online marketing,
the Hilton is able to maintain their sustainable growth.
Apart from major two illustrated above, few more are related to reservations administration, attending guests, performing all front office operations, maintain
cleanliness in hotel premises and various other similar type of things. But generally hotel staff is unable to perform all the tasks in synchronized manner which lead towards
the chaos and customer dissatisfaction. They highly able to impact the business actions about the sustainable development goals as well as guides the operations of the hotel
business considering the brands, properties as well as regions (Zeng, 2021). Thus, in this context, the Hilton is not only care for their customers and shareholders but also
should take care for their employees, society as well as community along with the whole environment in broader contexts. CSR enables the firm to provide bigger footprints
by employing large number of workers along with the usage of natural resources. The Hilton incorporated the CSR initiatives for developing community, progressed
employment practices and stimulating diversity within the employees. And for this, company adopts various methods to become part of the socially responsible company.
Hilton's plan for market development and product development
In order to adopt market development strategies for the betterment of the company the Hilton involves their efforts on the part of the CRM which belongs to
customer relationship management in order to create new markets as well as channels for their current offered services and products ( Sari and Asad, 2019). This might
includes entering into the global or international market place, entering into the new domestic markets, tying up with complimentary companies in order to drive sales of
current products, services, etc. Thus, the company highly target the customer segments which represents the senior aged and middle-aged professionals with premium level
of income and belongs to upper social class sector.
On the other hand, in context of product development, this includes adding up of new and advanced features to their current offerings in terms of products and
services for their existing market. One of the most prominent examples of Hilton of utilizing online mode of reservation facilities rather than physically doing reservations.
Within this, the customers and market segments remains the same but the company keeps on launching improved version of their facilities or products in order to
appropriately target their existing market space (Hughes, Vafeas and Hilton, 2018). Thus, with the help of adopting the latest technology, prices and distribution channel, the
company itself create their unique value in front of their competitors.
REFERENCES
Books and Journals
Alameri, M. and et.al., 2021. Financial Analysis of Hilton Holdings. Available at SSRN.
DeYeso, K.L., 2019. The influence of social media on the Hilton brand (Doctoral dissertation, Southern New Hampshire University).
Hilton, R. and McCann, D., 2022. Nurturing Sustainability as a Future-Oriented Strategy. In Innovative Leadership in Times of Compelling Changes (pp. 171-184).
Springer, Cham.
Hilton, R. and McCann, D., 2022. Nurturing Sustainability as a Future-Oriented Strategy. In Innovative Leadership in Times of Compelling Changes (pp. 171-184).
Springer, Cham.
Hughes, T., Vafeas, M. and Hilton, T., 2018. Resource integration for co-creation between marketing agencies and clients. European Journal of Marketing.
Langer, A., 2022. The Hotel on the Hill: Hilton Hotel’s Unofficial Embassy in Rome. Diplomatic History, 46(2), pp.375-396.
Mo, J. and Hilton, M.D., 2020. Architectural design for integrated support of complex engineering projects. Journal of Aerospace Operations, 5(s1), pp.S1-S18.
Sari, R.P. and Asad, N., 2019. New product development-processes in the fashion industry: Evidence from Indonesian Islamic fashion companies. Journal of Islamic
Marketing.
Zeng, L., 2021. Analysis of Hilton Worldwide Hotel Group’s Transnational Operation Strategy. Academic Journal of Business & Management, 3(11).